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Investment
Investment policy in Indonesia is very open to foreign investment access.
This, among others, is indicated by only a small number of sectors are
restricted, the availability of fiscal incentives to attract foreign
investors, no limitation on the value of investment, the possibility for
foreign investors to wholly own their investment in almost all sectors and
simplified investment approval process. The Indonesian Government realizes
that investment is one of the most important factors in driving economic
growth and, thus, tries hard to improve investment procedures in the future
in order to stimulate a more favorable investment climate. Hence, the new
investment law, passed in March 2007, cuts down time and procedures to start
a business in Indonesia, opens up sectors previously included in negative
list for investment, converting ‘red tape’ into ‘red carpet’. With a market
over 230 million people, rich in natural resource and labour force, situated
strategically in Southeast Asia and linked to 500 million ASEAN market,
Indonesia is a lucrative destination for investment.
Investment realization (Jan – Dec, in USD):
|
|
2006 |
2007 |
Net Growth |
|
Domestic |
2.31 billion |
3.87 billion |
67.80% |
|
Foreign |
5.97 billion |
10.34 billion |
73.19% |
|
Total |
8.28 billion |
14.21 billion |
72.00% |
Foreign
Investment realization by sector (Jan-Dec 2007)
|
No. |
Sector |
Investment
(in USD million) |
Projects |
|
1 |
Transportation, Warehouse & Communication |
3,305.2 |
43 |
|
2 |
Chemical & Pharmaceutical Industry |
1,611.7 |
32 |
|
3 |
Metal, Engineering & Electronics Ind. |
714.1 |
99 |
|
4 |
Food Industry |
704.1 |
53 |
|
5 |
Paper, Paper Good & Printing Industry |
672.5 |
11 |
Source: Indonesian Investment Coordinating Board
For
further information:
The Indonesian Investment Coordinating Board (BKPM)
Jend.
Gatot Subroto No. 44 Jakarta 12190 Indonesia
Phone
: (62-21) 525-2008, 525-2649, 525-4981
Facsimile
: (62-21) 525-4945
Email
: sysad@bkpm.go.id
Indonesian Chamber of Commerce and Industry (KADIN)
Menara Kadin Indonesia Lt 29 - Jalan HR Rasuna Said X-5 kav 2-3,
Jakarta 12950 - Indonesia
Telepon
:[62-21]-5274484 (hunting)
Fax
:[62-21] 5274331 - 5274332
Email
:
infokadin@kadin-indonesia.or.id (public relations)